Nesbitt: Legislation would deny college kids opportunity (video)

Legislation (S.B. 74[1]) that would allow individual community colleges to opt out of the federal student loan program is up for its 3rd reading in the Senate this evening.

Senator Martin Nesbitt[2] sought to slow down the bill’s passage last week, arguing that the measure would force students to rely on credit cards (and a much higher interest rate) to cover their tuition.

Republican Senator Jerry Tillman[3] argued that foundation money is available to help needy students, and lawmakers should not force trustees to participate in the federal program.

Proponents of the bill also worry that a high-default rate by students on the federal loans could cause the college to be sanctioned. The North Carolina Center for Public Policy Research[4] has acknowledged that concern, but says this bill has the potential to deny more than 177,000 students “the safest and most affordable way to borrow money for college.”